Gregory E. Wannier*
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Introduction
In 2009, the House of Representatives, responding to rising concerns
over anthropogenic contributions to climate change, passed the first major
piece of climate legislation in U.S. history.[1]
This bill, the “American Clean Energy and Security Act of 2009” (ACESA), would
cap U.S. carbon emissions and establish a national carbon market where
regulated parties trade carbon dioxide emissions rights.[2] However, because many in the
developed world fear that carbon markets will hurt domestic industries and lead
to job losses and “leakage” of carbon emissions to less-regulated markets in
the developing world,[3]
ACESA imposes severe quality controls on the importation of energy-intensive
manufactured goods that face the highest prospective carbon reduction costs.[4] This provision
could dramatically affect trade, and thus could be challenged under the World
Trade Organization (WTO), an intriguing possibility given the WTO’s
controversial status in the trade community.[5]
International shipping containers at the Port of Oakland, Oakland, California. Photo courtesy of Nell Green Nylen.
This Article takes ACESA through a theoretical WTO review, ultimately
finding that ACESA would probably pass WTO review with some modifications. WTO
consideration of ACESA could serve as an indication of how future unilateral
action can be effectively and legally taken. However, the lesson from this
analysis goes further; WTO retains the ability to overturn environmental
protections, and its decisions are respected (if not always appreciated or adhered
to) by the international community. As countries negotiate a balance between
economic fears in the developed world and economic growth in the developing
world, they may find that norms established and enforced by the WTO provide
useful insights.